Minerva & Company reported $150,000 as its ending inventory and $2,750,000 as cost of goods sold for Year 2. Its LIFO reserve totaled $77,500 and $55,000 for Year 2 and Year 1, respectively. The companys effective income tax rate was 30%. Sales amounted to $4,000,000 for Year 2. How much did the company save in income taxes as a result of using LIFO to value its inventories during Year 2?

Select one:

A. $18,500

B. $22,500

C. $ 5,550

D. $ 6,750